US stocks continued to decline following Bitcoin’s plunge after the PBOC stating that the digital token can’t be used as a form of payment. The Fed minutes pointed to a cautiously positive economic outlook, with some officials being open to bond-buying tapering. The dollar was mostly higher and the 10yr Treasury yield softened to 1.6352%. Meanwhile, the UK inflation rate doubled to 1.5% y/y in April, supported by retail spending after the shops reopened in mid-April. From the virus front, the EU agreed to allow vaccinated people as well as those coming from ‘safe countries’ to come in without the need to isolate.
LME metals prices sold off amid mounting inflation concerns yesterday, with zinc paving the way, falling as much as 3.76%, and closing at $2,939/t. Nickel was next in line, closing at the day’s lows at $17,322/t; cash to 3-month spread widened out to -$33.00/t. Copper prices sold off to test appetite at a key support level at $10,000/t, but support at that level triggered a close at $10,001.50/t. Aluminium remained under pressure, closing at $2,415/t. Lead tested the $2,170/t level and closed higher at $2,174.50/t.
Oil futures dropped on rising US stockpiles data and the possibility of additional supply from Iran. WTI and Brent fell down to $63.06/bl and $66.43/bl, respectively. Precious metals were mixed, with gold edging up to $1,885.70/oz and silver down to $27.99/oz.
All price data is from 19.05.2021 as of 17:30